Key Issues in Transportation Programming (2008)

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40 BREAKOUT SESSION Getting the Most Bang out of a Buck Project Prioritization Jonathan Davis, Massachusetts Bay Transportation Authority Patricia Bugas-Schramm, City of Portland Omar Smadi, Iowa State University STATE OF GOOD REPAIR “FIX IT FIRST” POLICY Jonathan Davis Jonathan Davis discussed capital programming at the Massachusetts Bay Transportation Authority (MBTA). He described the services operated by the MBTA, the 25- year Program for Mass Transportation, the Capital Investment Program (CIP), the State-of-Good-Repair (SGR) database, and the Fix-it-First program. Jonathan covered the following points in his presentation. • The MBTA is the fifth-largest transit property in the country. It is an independent public authority that provides service to 175 communities in the Boston met- ropolitan area. The MBTA serves some 1.1 million pas- sengers each day. Services and modes operated by the MBTA include bus, rapid transit, streetcars, trackless trolleys, commuter rail, ferry service, and paratransit. Approximately 42% of trips to downtown Boston and some 55% of all work trips to Boston are made by tran- sit. The MBTA is key to the regional economy. The MBTA serves a population of 4.7 million people over a 3,200-square-mile area. Three-quarters of all Massachu- setts residents live within the MBTA service area. • The MBTA operates a variety of public transporta- tion services, including three heavy rail lines, one bus rapid transit line, one light rail transit (LRT) line, and 200 bus routes. The MBTA also operates 11 commuter rail lines, one high-speed trolley line, four trackless trol- ley lines, a ferry service, and the paratransit system known as “THE RIDE.” • The Forward Funding Blue Ribbon Committee was established in 2000. Forward funding replaced a system of unlimited state funding that was paid in arrears. TheMBTAmust now budget and operate within its own sources of revenue. Operating funding sources include a dedicated sales tax, fare revenues, local assess- ments, and nonfare revenues. The dedicated sales tax is the greater of 1.0% of a statewide sales tax or a base rev- enue amount. Capital funding includes revenue bonds, federal grants, a capital maintenance fund, and specific project financing. • The Program for Mass Transportation (PMT) is a 25-year master plan for the MBTA. It defines a vision for regional mass transportation and sets priorities for infra- structure investments. The PMT is updated every 5 years and is financially unconstrained. The MBTA partners with other agencies and groups to develop and carry out the PMT. A working committee includes members repre- senting the City of Boston, state agencies, regional agen- cies, and community groups who assist with the development and updating of the PMT. The MBTA Advisory Board is actively involved, as are metropolitan planning organizations, interest groups, and the public. The MBTA uses workshops, public hearings, and other methods to involve the public. • The CIP is a rolling 5-year capital program that implements the 25-year PMT. The CIP is financially con- strained, and the draft CIP includes the current fiscal year (FY). The CIP includes some $470 million each year in SGR investments. • The CIP’s statutorily mandated criteria address the effectiveness of the state’s transportation system, service 60627_TRB_S1_A:01-CP43 11/17/08 10:15 AM Page 40

quality, the environment, and health and safety. Other criteria address operating costs, SGR, and debt service. • The MBTA’s infrastructure is extensive and has major capital needs. The existing MBTA infrastructure includes more than 2,500 revenue vehicles, 275 stations, and 885 mi of track. It also includes 496 bridges, 20 mi of tunnels, and 19 maintenance shops. • In 2002, theMassachusetts Taxpayers’ Foundation, with contributors from the Pioneer Institute for Public Policy Research, issued a report on the MBTA capital spending. The report suggested that fiscal constraints change the way capital projects are evaluated and that the existing debt burden limits the ability of the MBTA to fund the capital program. The report further suggests that the reliance on debt financing and limited “pay–go” cap- ital further exacerbates the issue and that capital needs of the antiquated system are growing faster than revenues. The report recommends that maintenance and modern- ization of the current system be the top priorities. • The MBTA’s 2003 capital spending and infrastruc- ture report addresses some of these issues. The MBA must operate within well-defined limits to fund the capi- tal program. The SGR study assessed the condition of the MBTA’s capital assets. The SGR database provides a uniform and equitable system for identifying and priori- tizing capital needs. The backlog of capital investments needed to achieve SGR is estimated at $2.7 billion. The SGR is defined as the ideal operating condition. It repre- sents a perfect capital replacement policy. • The MBTA has used the SGR database for internal management, discussions with policy makers, and plan- ning and analyses. The initiative focuses on a “fix-it- first” strategy. It assessed the current state of capital assets and developed a system to identify and prioritize capital renewal and replacement needs. The backlog of needed projects was estimated at $2.7 billion. An annual capital spending rate of $570 million is needed to elimi- nate the backlog in 20 years. The SGR investment rate would represent 73% of the FY 2006–2010 CIP. • In the 2003–2004 period, the governor supported the Fix-It-First program at the MBTA. Under this pro- gram, the MBTA prioritizes its limited capital resources for SGR first and for expansion second. This approach is consistent with the new statewide long-range transporta- tion plan. The state has made a commitment to pay capi- tal costs for system expansion, but no similar commitment has been made to address increased operating costs. The MBTA’s SGR spending is consistent with the governor’s policy and the long-range transportation plan. • There are two objectives for the SGR database. These objectives are to demonstrate ongoing funding needs and consequences based on an engineering assess- ment of current assets and to develop a long-range capital-planning model through project programming under constrained funding. The SGR database is a tool to assist the MBTA in identifying and prioritizing renewal and replacement actions needed to bring exist- ing capital assets to an SGR and to sustain this level. The SGR database analyzes more than 2,400 individual capital asset records. • The SGR database requirements focus on high-cost MBTA assets. It is not a maintenance database of all assets, nor is it a static database; it requires periodic updates. The SGR database supports objective analysis and runs scenarios in reasonable time frames of fewer than 5 min. The SGR database organizes, stores, and facilitates various types of queries on the capital asset information. It can be used to identify asset renewal and replacement activities and the costs necessary to bring and maintain the MBTA system to an SGR. The data- base can be used to score and rank candidate actions subject to MBTA capital budge criteria. It can also cre- ate, analyze, and compare capital budget and policy sce- narios, including those related to asset useful lives, renewal cycles, and capital budget allocation priorities. • In the Fix-It-First SGR program, all new capital needs are ranked by five factors, each equally weighted at 20%: safety and environment, SGR, cost–benefit, operational impact, and legal commitments. The first factor is further divided into safety (10%), health (5%), and environment (5%). The existing infrastructure and service receive 80% of the weight in capital funding cri- teria for the future. The MBTA’s policy is that a mini- mum of 70% of capital spending is on system preservation in the PMT. The MBTA’s FY 2007 operat- ing budget is $1.34 billion. • Other facts about the MBTA include the following items. MBTA vehicles travel the equivalent of four trips around the world each day. The only cemetery in North America traversed by an LRT line is the Cedar Grove Cemetery in Dorchester on the Red Line. Each day, the bus fleet carries the equivalent of 10 times the capacity of Fenway Park. The Red Line reflects Harvard University Crimson. The Orange Line initially ran on Washington Street, formerly known as Orange Place or Orange Way. The Blue Line reflects the color of the waters of the Atlantic. The Green Line serves Frederick LawOlmsted’s Emerald Necklace, a 6-mi linear park in Boston and Brookline. The Purple Line reflects European monarchs’ use of the color on their private trains. The Silver Line symbolizes speed and high performance. TRANSPORTATION AND DECISION MAKING IN PORTLAND Patricia Bugas-Schramm Patricia Bugas-Schramm discussed transportation deci- sion making and project programming at the City of 41GETTING THE MOST BANG OUT OF A BUCK 60627_TRB_S1_A:01-CP43 11/17/08 10:15 AM Page 41

Portland. She described different elements of the city’s project selection and capital programming processes. She also highlighted approaches to transportation project programming in New Zealand and Canada identified during a recent international scan tour. Patricia covered the following points in her presentation. • The Portland metropolitan area has a population of approximately 1.6 million. If the communities in the Washington State portion of the greater metropolitan area are included, the population increases to some 2 million. The area continues to experience rapid growth. The population of the area is projected to increase by 1 million over the next 20 years. • The transportation system in the city represents a large portion of the city’s assets, some $5.8 billion of the city’s total $15.2 billion asset replacement value. The transportation infrastructure in the city also represents a growing number and type of assets, including roadways, bridges, streetlights, parking signs, sidewalks, traffic control signs, and traffic signals. Other transportation assets include bike lanes, parking meters, stairways, retaining walls, and harbor walls. There are 32 asset categories. • The Portland Office of Transportation (PDOT) monitors the status and condition of transportation assets. A recent report examined trends over the 20-year period from 1986 to 2006. The report identified a $249 million gap in asset funding needs. This funding gap resulted from increasing costs and flat revenues. The last increase in the state gasoline tax was approved by the legislature in 1991 and implemented in 1993. Revenues generated by some elements of the transportation net- work are deposited into the General Fund, but there has been no long-term General Fund support to maintain transportation assets. • The street preservation program asset management integration represents one approach to addressing these issues. The vision of the program is to provide a smooth, safe, and affordable street network and to build and operate the system to last. Service-level targets have been set for maintaining street smoothness, a citizen rating of neighborhood street smoothness, overall street mainte- nance, and maintaining a backlog at the 2004 level of 586 mi. Service-level indicators include street condition, perceived overall street maintenance, perceived neigh- borhood street smoothness, and backlog. A service- response standard is to fill potholes within 2 h in an emergency and within 48 h for routine maintenance. • Scenario planning is conducted to identify the con- sequences of different levels of investments in maintain- ing various assets. This information is shared with policy makers and the public. Information on the perception of the public is also collected and shared with decision makers. • As an example, the asset database includes exten- sive information on traffic signals. The database can be used to evaluate different replacement rates and service levels. This type of analysis clearly shows predicted good, fair, and poor values based on various replacement rates. For example, if additional funding is not programmed for traffic signal hardware replacements between 2006 and 2015, the percent of signals in the poor category exceeds the percentage of signals in the good category. • Funding needs were examined by the five general asset categories of pavements, street lights, traffic sig- nals, bridges, and sidewalks. A strategy focused on pre- venting further deterioration and a strategy focused on providing a sustainable level of service were evaluated. The annual investment needed to achieve the sustainable level of service was identified. • A newmayor, who had made transportation one of his campaign issues, took office in 2005. The mayor stressed the need to focus on maintaining the transporta- tion infrastructure. The mayor and the transportation commission have taken very active and visible roles on transportation matters. The city adopted the goal of operating and maintaining an effective and safe trans- portation system. The city council priorities for the 2007 fiscal year include investing in and maintaining the city’s infrastructure, making the city family friendly, and encouraging sustainable economic development. Other priorities focus on ensuring public safety and emergency preparedness, and seeking and using alternative energy sources. The city transportation commissioner’s vision is for an accessible, safe, well-maintained transportation system that provides travel options, supports a family- friendly city, and supports economic development. • The transportation commissioner identified five strategic change measures: (a) repair and replace infra- structure on the most cost-effective schedule; (b) accu- rately price transportation trips and services; (c) reduce the number of single-occupancy vehicle trips where real- istic transportation alternatives exist; (d) reduce the number and duration of unexpected, nonrepeating trans- portation delays; and (e) prevent crashes, especially at intersections, focusing on the 20 most dangerous inter- sections in the city. These measures and other related topics are part of the commissioner’s weekly meetings. • PDOT’s goal is to build and operate the trans- portation system to last. The performance target is to budget the resources necessary to eliminate the growth in the maintenance backlog. Specific targets are to keep the paving backlog at or below 586 mi, keep the paving ratings at or above 55% good and 22% fair each year (FY2004–2005 levels), keep the signal hardware condi- tion rating at or above 29% good and 35% fair (FY2004–2005 levels), and achieve a citizens’ overall perception of street condition at or above 55% good and 22% fair. The department also communicates exten- 42 KEY ISSUES IN TRANSPORTATION PROGRAMMING 60627_TRB_S1_A:01-CP43 11/17/08 10:15 AM Page 42

sively with city employees and managers, the city coun- cil, and the public. The information is also used to help with budget discussions. • There is also an asset management users group that focuses on balancing risk. The risk criteria include links to council goals, the effects on customers, the effects on asset life, and the effects on level of service. Other crite- ria include the risk of service failure, the effects on rev- enue, the effects on other divisions, and the impacts on staff. The impacts of these criteria can be examined. Investments that have the highest value can be identified as well as areas where limited investments will have the least impact. • The information is used in the project selection process. The council priorities focus on deferred mainte- nance; economic vitality, environment, and sustainabil- ity efforts; a family-friendly city; and inclusive and efficient government. The commissioner’s priorities focus on safety, maintenance, and geographic equity. • An analysis was conducted examining the top 40 crash intersections from 2001 to 2004. The social cost of the crashes, including fatalities and injuries, was esti- mated and compared with the costs of addressing the problems at the 40 intersections. • It is important to remember that trust is based on accountability. The well-being of a community is closely linked to the adequacy of its infrastructure. It is impor- tant to understand what citizens want, to define ways of measuring delivery to meet these expectations, to identify means of improving system performance, and to continu- ally monitor whether citizen expectations are being met. PROJECT PRIORITIZATION: HOW TO COMMUNICATE? Omar Smadi Omar Smadi discussed research at the Center for Trans- portation Research and Education at Iowa State Univer- sity conducted for the IowaDepartment of Transportation related to asset management. He described the develop- ment and use of a roadway infrastructure management and operations system and highlighted the need to com- municate the results with policy makers. Omar covered the following points in his presentation. • Asset management represents the backbone of any management system. The first step in developing an asset management system is identifying each asset, the loca- tion of the asset, and the condition of the asset. Approaches to maintaining assets and the cost associ- ated with different approaches can then be identified and analyzed. • Different prioritization schemes can be used to maintain assets in good condition. Possible schemes include focusing on condition and addressing the worst problems first, focusing on condition and functional classification, and focusing on economics by using bene- fit–cost ratios or cost-effectiveness criteria. Still another approach is to use an optimization process such as linear programming or integer programming. • A number of tools are available for use with asset management systems. The roadway infrastructure man- agement and operations system was developed to assist with asset management in Iowa. It can be used to analyze asset management prioritization schemes. For example, the “worst-first” approach in pavement management is not as cost-effective as other approaches. Under the worst-first approach, roadways in fair and good condi- tion continue to deteriorate while funds are spent to reconstruct the worst roadways. Also, because recon- struction is more expensive than maintenance, fewer miles of roadways can be addressed. A second approach is to allocate funds based on the percentage of roadways in each category. A third approach is to address roadways in the best conditions first to keep them in good condi- tion. Simulation results indicate that this approach is the best method for keeping roadways in good condition. • A variety of transportation-related assets may be included in asset management plans. Examples of high- way and roadway assets include pavements, concrete railings, pavement markings, bridges, signs, and other fixed facilities. Asset management systems provide the ability to examine different strategies based on available funding to maintain facilities. • It is important to present the results of prioritiza- tion schemes and other analyses to policy makers. Com- municating the costs and benefits of different approaches can assist in the decision-making process. The analysis conducted in Iowa illustrates the benefits of a pavement management system. Although a number of techniques can be used for the technical analysis, communicating with decision makers is a key element in the process. It is also important to document the process used and to keep all groups informed. Policy makers realize the benefits of asset management analysis tools. They become more engaged in the process, asking questions and identifying other possible schemes for testing using different analyt- ical tools and techniques. Glen Tepke, Metropolitan Transportation Commission, moderated this session. 43GETTING THE MOST BANG OUT OF A BUCK 60627_TRB_S1_A:01-CP43 11/17/08 10:15 AM Page 43